AMD flash Buy signal after Trump pauses tariff
President Trump paused just as Wall Street was beginning to fear that tariffs would put a stop to the chip industry. His tariff relief window gave AMD a chance to recover and tech investors a reprieve. The stock had its best run in nearly ten years, rising by 24 percent since last Wednessday
The company recently closed a $4.09 billion acquisition of ZT Systems to expand capacity. AMD wants to provide full-stack solutions by combining its CPUs, GPUs, and software platform ROCm, an open-source alternative to Nvidia’s CUDA, in response to the growing demand for powerful servers.
AMD isn’t attempting to overtake Nvidia. Rather, it is eschewing the factory gloves and focusing on its core competency, which is designing innovative hardware.
The investment community will be closely monitoring the performance of Advanced Micro Devices in its forthcoming earnings report. The company is scheduled to release its earnings on May 6, 2025. The company is expected to report EPS of $0.93, up 50% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.12 billion, up 30.11% from the year-ago period.
Advanced Micro Devices is exchanging hands at a Forward P/E ratio of 20.36 from a valuation perspective, . This valuation marks a premium compared to its industry’s average Forward P/E of 11.2.
The company’s compliant MI308 SKU is in high demand in China. Alibaba and Tencent are particularly interested in it, primarily because of DeepSeek.
Though short-term trends are encouraging, the analyst believes China’s demand for AI may not be sustainable and may be in danger. Long-term concerns are also growing because of possible new US export restrictions.
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